x264 conversion troubles

hello all. i'm having trouble converting a video to mp4/avc for viewing on my blackberry storm 9530. when i try a two pass encode, the video comes out looking great. but when i use the exact same command and do a three pass encode, i get macroblocking and smearing, along with stuttering. if i understand correctly, the three pass encode just analyzes the file one more time. it shouldn't affect anything in the resulting video except bitrate distribution and i've put a 1024 kbit/sec cap on the video. the two-pass encode looks fine but i'd just like to squeeze a little more quality out of x264. i can even reduce my bitrate in the three-pass encode, but no success. i'll paste the first pass command line below. thanks for the help!!!

Code:

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"C:\Users\Johnathon\Desktop\video tools\x264.exe" --profile baseline -I 240 -i 24 -B 768 --vbv-maxrate 1024 --vbv-bufsize 2048 -p 1 --stats "C:\Users\Johnathon\Desktop\FFVII\stats.log" --threads 8 -o "C:\Users\Johnathon\Desktop\FFVII\FFVII.264" "C:\Users\Johnathon\Desktop\FFVII\FFVII.avs"

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